Operations capability, productivity and business performance: the moderating effect of environmental dynamism

Purpose – The purpose of this study is to investigate the relationships between operations capability, productivity and business performance in the context of environmental dynamism. Design/methodology/approach – A proposed conceptual framework grounded in the resourcebased view (RBV) and dynamic capability view (DCV) is analysed using archival data from 193 automakers in the UK. Findings – The results show that operations capability, as an important dynamic capability, has a significant positive effect on productivity, which in turn leads to improved business performance. The results also suggest that productivity fully mediates the relationship between operations capability and business performance, and that environmental dynamism significantly moderates the relationship between operations capability and productivity. Practical implications – The research findings provide practical insights that will help managers develop operations capability to gain greater productivity and business performance in a dynamic environment

Knowledge Management Activities and Strategic Planning Capability Development

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.While the strategic management literature extols the virtues of engaging in strategic planning for superior performance, how a dynamic strategic planning capability can be developed remains underexplored; a knowledge void addressed by the paper through applying knowledge-based theory. A mail survey was sent to high technology firms randomly sampled from the Kompass Directory of UK businesses. Firms were sampled at the SBU level, given the focus on strategic planning capability. An organization’s strategic planning capability derives from extensive information distribution and organizational memory. While learning values is non-significant, symbolic information use degrades the development of a strategic planning capability. By investigating the contributory activities that lead to strategic planning capability development, the findings establish how strategic planning materializes in organizations. Further, the differential effects found for knowledge management activities on strategic planning capability development extends empirical studies that suggest knowledge is always a central tenet of strategic planning. A set of key knowledge activities are identified that managers must address for strategic planning capability development: strategic planning routines and values of search, analysis, and assessment should be appropriately informed by investments in knowledge dissemination and memory on a continual basis. Meanwhile, information misuse compromises strategic planning capabilities and managers must protect against out-of-context or manipulated information from infiltrating into organizational memory. Despite the advent of the Knowledge-Based Theory and its core premise that capabilities derive from knowledge management activities, little research has been conducted into demonstrating the knowledge-based antecedents of a strategic planning capability

From customer-oriented strategy to perceived organizational financial performance: the role of human resource management and customer-linking capability

Drawing on the organizational capabilities literature, we developed and tested a model of how supportive human resource management (HRM) improved firms’ financial performance perceived by marketing managers through fostering the implementation of a customer-oriented strategy. Customer-linking capability, which is the capability in managing close customer relationships, indicated the implementation of the customer-oriented strategy. Data collected from two emerging economies–China and Hungary–established that supportive HRM partially mediated the relationship between customer-oriented strategy and customer-linking capability. Customer-linking capability further explained how supportive HRM contributed to perceived financial performance. This study explicates the implication of customer-oriented strategy for HRM and reveals the importance of HRM in strategy implementation. It also sheds some light on the “black-box” between HRM and performance. While making important contributions to the field of strategy, HRM and marketing, this study also offers useful practical implications

Developing people capabilities for the promotion of sustainability in facility management practices

Sustainability is becoming an integral part of the life-cycle development of built facilities. It is increasingly highlighted during the post construction phase, as facility management personnel can have major influence to the sustainability agenda through operational and strategic management functions. Sustainable practices in facility management can bring substantial benefits such as reducing energy consumption and waste, while increasing productivity, financial return and corporate standing in the community. Despite the potential, facility managers have yet to embrace sustainability ideas holistically and implement them in their operation. The lack of capabilities and skills coupled with knowledge gaps are among the barriers. In the developmental context, capabilities are vital to foster the competency of an organisation. Facility managers need to be empowered with the necessary knowledge, capabilities and skills to support sustainability. This research investigates the potential people capabilities factors that can assist in the implementation of sustainability agenda in facility management practices. Through questionnaire survey, twenty three critical people capability factors were identified and encapsulated into a conceptual framework. The critical factors were separated into four categories of strategic capabilities, anticipatory capabilities, interpersonal capabilities and system thinking capabilities. Pair-wise comparison and Interpretive Structural Modelling techniques were then used to further explore the interrelationship and influence of each critical factor. An interpretive structural model for people capability was developed to identify the priority of critical factors and provide a hierarchical structure to guide facility managers for appropriate actions. The research concludes with three case-studies of professional facility management practices to finalise the developed people capabilities framework and interpretive structural model. Through the identification and integration of different perceptions and priority needs of the stakeholders, a set of guidelines for action and potential effects of each people capability factor were brought forward for the industry to promote sustainability endeavour in facility management practices

Firms' transition towards green product service system innovators

Within this paper we explore transition paths firms can take to become product service system (PSS) innovators. Applying the dynamic capability approach we study how three firms have developed PSS innovations in the mobility sector (Car2Go by Daimler AG, Connect by Hertz by The Hertz Corporation, Better Place). We explore the different paths the firms have taken originating from different capability sets. Based on semi-structured qualitative interviews with project managers of successful PSS innovations we propose a framework that incorporates three major transition paths. We derive propositions for necessary capability sets for different firm types, the sequence of necessary capability sets along the innovation process and discuss different types of environmental gains realized through PSS. --Innovation management,product service system,transition path,sustainability

A process-based model of network capability development by a start-up firm

Start-up firms are notoriously resource and time poor. One way of addressing these deficits is to develop strategic capability to access, activate and co-shape resources with other firms in the start-up's network. The capability literature assumes such a development is inevitable, provided a start-up survives. But developing network capability depends on the managers of other firms, the deepening managerial understanding of business relationships, and the ability of the start-up managers to adjust to and understand interdependence in networks. We present a processual model of how managerial understanding of network capability develops, comprising of three parts each building on the earlier: (i) in relationships, (ii) through relationships and (iii) in the network. The model was inductively developed from a longitudinal study of a start-up firm. Also, two sensemaking processes were found to predominate â problem solving and social-cognitive processes. Our model highlights the role of the start-up manager in sensemaking with managers across a number of firms to resolve commercial problems. Thus, the independence many start-up managers seek must turn towards interdependence. Second, managers' temporal horizons and the specific temporal profile of events and activities inside the involved business relationships are important in understanding and developing, with other firms, network capability

Marketing management capability:the construct and its dimensions: an examination of managers’ and entrepreneurs’ perceptions in a retail setting

Purpose: This paper aims to explore the relationship between corporate cultural/intangible assets and marketing capabilities by examining managers’ and entrepreneurs’ perceptions in a retail setting.Design/methodology/approach: Nineteen face-to-face interviews were conducted with UK small and medium sized enterprise (SMEs) managers and entrepreneurs to identify six sub-capabilities that form marketing capability. The authors further validated the relationship between marketing sub-capabilities and its antecedent tangible and intangible assets. The qualitative approach used provided a deeper insight into the motivations, perceptions and associations of the stakeholders behind these intangible concepts, and their relationships with their customers.Findings: The research identified that there is a strong relationship between tangible and intangible assets, their components and the following capabilities: corporate/brand identity management, market sensing, customer relationship, social media/communication, design/innovation management and performance management. In addition, companies need to understand clearly what tangible and intangible assets comprise these capabilities. Where performance management is one of the key internal capabilities, companies must highlight the importance of strong cultural assets that substantially contribute to a company’s performance.Originality/value: Previous work on dynamic capability analysis is too generic, predominantly relating to the manufacturing sector, and/or focussing on using a single case study example. This study extends the concept of marketing capability in a retail setting by identifying six sub-capabilities and describing the relationship of each with tangible and intangible assets. Through extensive qualitative analysis, the authors provide evidence that by fully exploiting their embedded culture and other intangible components, companies can more favourably engage with their customers to attain a sustainable competitive advantage.</p

Practices for strategic capacity management in Malaysian manufacturing firms

While the notion of manufacturing capabilities is a long-standing notion in research on operations management, its actual implementation and management has been hardly researched. Five case studies in Malaysia offered the opportunity to examine the practice of manufacturing managers with regard to strategic capability management. The data collection and analysis was structured by using the notion of Strategic Capacity Management. Whereas traditionally literature has demonstrated the beneficial impact of an appropriate manufacturing strategy on the business strategy and performance, the study highlights the difficulty of managers to set the strategy, let alone implementing it. This is partly caused by the immense pressure of customers in these dominantly Make-To-Order environments for SMEs. Current concepts for manufacturing capabilities have insufficiently accounted this phenomenon and an outline of a research agenda is presented

Measuring Selectivity and Market Timing Performance of Mutual Funds in Indonesia Using Single and Dual Beta Models

This study aims at measuring the performance of mutual funds based on the ability of investment managers in conducting selectivity and market timing by using the Treynor-Mazuy Model. The method used in this study is explanatory survey method or explanatory research. The populations in this study were 167 mutual funds in Indonesia in the period of 2008-2014. Based on purposive sampling criteria, the samples were 29 mutual funds. The data analysis technique used was two-pass regression model. The first pass regression was based on time series data and the second pass regression was based on cross-section. Testing the model was based on single beta model and dual beta model. This study showed that in single beta model, without separating bullish and bearish market conditions, mutual fund investment managers in Indonesia did not have selectivity ability, but had market timing capability. If a dual beta model that separated the bullish and bearish market conditions was used, the difference of the performance of the investment managers was showed. In bullish market condition, mutual fund investment managers in Indonesia did not have selectivity capability but had market timing capability. On the other hand, in bearish market condition, mutual fund investment managers in Indonesia did not have selectivity capability and did not have market timing capability. &nbsp; &nbsp; Keywords: Single and Dual Beta, Selectivity, Market Timing

Automated software quality visualisation using fuzzy logic techniques

In the past decade there has been a concerted effort by the software industry to improve the quality of its products. This has led to the inception of various techniques with which to control and measure the process involved in software development. Methods like the Capability Maturity Model have introduced processes and strategies that require measurement in the form of software metrics. With the ever increasing number of software metrics being introduced by capability based processes, software development organisations are finding it more difficult to understand and interpret metric scores. This is particularly problematic for senior management and project managers where analysis of the actual data is not feasible. This paper proposes a method with which to visually represent metric scores so that managers can easily see how their organisation is performing relative to quality goals set for each type of metric. Acting primarily as a proof of concept and prototype, we suggest ways in which real customer needs can be translated into a feasible technical solution. The solution itself visualises metric scores in the form of a tree structure and utilises Fuzzy Logic techniques, XGMML, Web Services and the .NET Framework. Future work is proposed to extend the system from the prototype stage and to overcome a problem with the masking of poor scores